Allan and Ralph are partners. Allan has a capital balance of P92,000 and Ralph has a capital balance of P75,000. Carol invested P60,000 to acquire an ownership interest of P50,000. Which of the following is TRUE of the impact of the transaction on the balance sheet?

a) Assets will increase and equity will decrease.

b) Asset increases and the equity will remain unchanged.

c) Assets will decrease and the equity will remain unchanged.

d) Both assets and equity will increase.